Technical Analysis An Art Or Science?
Forex Charting Lesson: Chapter 1 - Introduction
There are so many Technical Analysis books out there but you can hardly find one that is simple to understand. These books are not written for newbies and usually the authors themselve do not know the subject well. Most books are just repackaged based on past books. Hence, i have decided to create my own Technical Analysis lessons. I will make it as simple as possible for easy understandings. There will be as much graphs and step by step guide as possible. We believe that the basic is the most important step to understanding TA - with these basics, you can move on to read some of the more advanced books in the market. But what we can say is that - you do not need to. With the basics + your own experience = You can develop your own set of proven tools. Lets start with Chapter One.
Technical Analysis an Art or Science?
Technical Analysis started more as an art and has became more scientific due to rapid development in computer technologies.
It will remain an art with greater scientific underpinning.
Technical Analysis (TA) Vs Fundamental Analysis (FA)
Fundamental Analysis = Gives the causes of price movement
Technical Analysis = Studies the effects of price movement
TA and FA are mutually supportive in the long-term but when it comes to short-term theres usually conflicts. FA tends to be economic in nature and will not be able to forecast non-economic events such as political and other crises which often move financial markets.
Guidelines in using Technical Analysis
- TA is based on evidence, not logical.
- TA is based on probabilities and same as HYIP investment - theres no gurantee.
- Do not have the ONE tool mentality. TA is able using a combination of the tools available.
- When a tool/technique is proven to be successful, try to use it more often and improve it
About the Author: http://hyipfarm.com/blog - A netrepreneur who make his living online. He is actively involved in a wide range of online money making instruments such as HYIP, forex trading, google adesense, google adword, ppc marketing, blogging, ebooks, affiliate programs, websites and other online business.